The Australian business of Big Four professional services firm Ernst & Young (EY) has posted revenues of $2.5 billion for its 2024 financial year, a drop of 6 percent on the previous period.

Regional managing partner David Larocca cited softened demand for its transactions and consulting services for the almost 20 percent swing from last year, the results coming against the backdrop of a stalled economy and heavy public scrutiny.

The accounting and consulting firm however expects things to turn around over the coming twelve months, and is planning for modest growth on the back of significant investments into areas such as artificial intelligence, digital transformation, and sustainability services.

“In the last twelve months, we’ve seen the market – including government, financial services and corporate clients – shift priorities and investment decisions in response to a difficult environment,” Larocca stated. “Notwithstanding the very tough market conditions, and a heightened focus on professional services more broadly, we’re extremely proud of what we’ve accomplished.”

Larocca further pointed to growth in the firm’s energy, mining and telecommunication, media, and technology sectors, while its assurance division also maintained its upward trend, bringing over $700 million. Despite dropping, EY’s consulting division still contributed more than $1 billion to its bottom line, while its tax services business accounted for $610 million.

The Oceania chief’s enthusiasm however mostly centred on AI: “We aim to have the largest and most AI-proficient professional services team in Australia, which is why we’re putting technology adoption and data at the heart of our business,” Larocca stated, noting the US$1.4 billion the global firm has invested into building its own in-house AI platform, EY.ai EYQ.

The firm also recently appointed Katherine Boiciuc as its new chief technology & innovation officer, while bringing in 22 new partners over the course of the past year and promoting a further 31. Among other top-level appointments, EY last month installed new office managing partners in Adelaide, Sydney, and Canberra, with Simon Chan earlier taking over as Oceania consulting boss.

EY’s annual revenue announcement follows that of Deloitte, which also experienced a slight contraction to $2.78 billion, while PwC’s numbers are expected to drop it to the bottom the local Big Four, following the divestment of its public sector business in the wake of its government tax scandal. The Australian branch of KPMG has also traditionally reported in August.